State Bank of India (SBI) has reported a consolidated net profit of Rs 21,504.49 crore for the second quarter of FY26, marking a 6.4 per cent year-on-year (YoY) rise from Rs 20,219.62 crore in the same period last year.
On a standalone basis, the bank’s net profit increased 10 per cent YoY to Rs 20,159.67 crore, supported by steady growth in advances and a further improvement in asset quality.
Net Interest Income (NII), the difference between interest earned and interest paid, grew 3.3 per cent to Rs 42,984 crore compared to Rs 41,620 crore a year earlier.
However, the domestic Net Interest Margin (NIM) stood at 3.09 per cent, lower by 18 basis points (bps) from 3.27 per cent in Q2 FY25. The bank attributed this marginal decline to changing funding costs and competitive pressure on lending rates.
Operating profit rose 8.9 per cent YoY to Rs 31,904 crore from Rs 29,294 crore, reflecting strong core performance. SBI continued to register healthy credit growth, with total advances increasing 12.7 per cent YoY and domestic advances up 12.3 per cent.
Retail loans led the expansion, growing 15.1 per cent, followed by SME loans (up 18.8 per cent), agriculture loans (up 14.2 per cent), and personal loans (up 14.1 per cent).
Deposits increased 9.3 per cent YoY, with the CASA (Current Account and Savings Account) base expanding 8.1 per cent. The CASA ratio remained strong at 39.63 per cent as of September 2025, underscoring SBI’s robust low-cost deposit franchise.
On the asset quality front, the lender continued to deliver solid improvement. The Gross Non-Performing Asset (NPA) ratio fell to 1.73 per cent from 2.13 per cent a year ago, while Net NPA declined to 0.42 per cent from 0.53 per cent, indicating effective risk management and recoveries. The Provision Coverage Ratio (PCR) improved to 75.79 per cent, reflecting a stronger buffer against potential credit risks.
SBI’s strong balance sheet and diversified portfolio continue to drive its resilience amid evolving market conditions. With sustained loan growth, improving profitability, and declining NPAs, the bank remains well-positioned to maintain its leadership in India’s banking sector while focusing on digital transformation, financial inclusion, and expanding credit access across segments.
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